TaxTMI 
TaxTMI 
2025 (3) TMI 1844
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....xmi Enterprises and declared business income of Rs. 8,85,392/- being 10% of the gross turnover of Rs. 88,83,920/- under the provisions of section 44AD of the Act. The case was selected for limited scrutiny under CASS for the reason "large cash deposits in the bank accounts during the year". Accordingly, notice under section 143(2) dated 30.08.2018 was issued. Thereafter notice under section 142(1) of the Act was issued on 19.02.2019 and 31.10.2019 calling for details. Since assessee failed to comply with the notice, show-cause notice dated 26.11.2019 was issued and served on the assessee. Meanwhile notice under section 133(6) of the Act was issued to the respective banks for bank account statements and on perusal of the same Ld. Assessing Officer [hereinafter in short "Ld. AO"] observed that assessee has deposited cash of Rs. 1,30,04,133/- during the year. Another show-cause notice dated 20.12.2019 was issued to explain the source of cash deposits. Assessee in response to the notice filed its submissions. After considering the submissions, Ld. AO held that the amount of Rs. 59,80,000/- was remained unexplained and brought to tax under section 69A r.w.s. 115BBE of the Act. 3. On ....
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....ent of loan given to various persons during the earlier years and loan from relatives, realization from opening debtors and Rs. 16,00,000/- collected in cash for payment to masons. 7. Neither before us, no evidences have been produced by the Ld.AR substantiating the cash receipts. 8. Per contra, Ld. Departmental Representative [hereinafter in short "Ld.DR"] relied on the order of the Revenue Authorities. 9. We have heard both the sides and perused the material available on record. It is an undisputed fact that assessee has made total cash deposits of Rs. 1,30,,04,133/- into the various bank accounts during the impugned assessment year. However, the assessee could not substantiate the cash deposits by any documentary evidences before the Revenue Authorities. Assessee has simply stated that he has given interest free hand loans amounting to Rs. 25,50,000/- during the previous years and which was realised during the impugned assessment year. Further we also find that the assessee has stated that he has received Rs. 8,60,000/- from the opening debtors and has also accepted loans amounting to Rs. 9,70,000/- and has collected Rs. 16,00,000/- which is to be paid for masons for la....
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....the source of the same as part of business turnover. In no way, these case laws are applicable to the facts of the present case where the appellant has himself admitted that the source of the impugned cash was not out of his business turnover but from miscellaneous receipts mentioned in para 5.4 above." 10. Given these facts and circumstances the case, we find that Ld. CIT(A) has rightly confirmed the additions made by the Ld. AO amounting to Rs. 59,80,000/- and hence we do not find any infirmity in the order of the Ld.CIT(A). 11. With respect to the additional ground raised by the assessee, assessee placed reliance on the order of the Co-ordinate Bench of the Ahmadabad Tribunal in the case of Naranbhai Samatbhai Bharwad v. ITO in ITA No.272/AHD/2024 dated 03.01.2025. The contention of the assessee is section 115BBE of the Act was amended with respect to the tax imposing from 30% to 60% w.e.f 01.04.2017 onwards. The Ld.AR contended that therefore the imposing of tax @60% was applicable only to the transactions from 01.04.2017 onwards and cannot be applied retrospectively. 12. Per contra, Ld. DR relied on the orders of the Revenue Authorities. 13. We have heard both the ....
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....ng provisions of the Income tax Act, 1961 (the Act) can possibly be used for concealing black money. The Taxation Laws (Second Amendment) Bill, 2016 ("the Bill") has been introduced in the Parliament to amend the provisions of the Act to ensure that defaulting assessees are subjected to tax at a higher rate and stringent penalty provision. Further, in the wake of declaring specified bank notes "as not legal tender", there have been suggestions from experts that instead of allowing people to find illegal ways of converting their black money into black again, the Government should give them an opportunity to pay taxes with heavy penalty and allow them to come clean so that not only the Government gets additional revenue for undertaking activities for the welfare of the poor but also the remaining part of the declared income legitimately comes into the formal economy. In this backdrop, an alternative Scheme namely, "Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016" (PMGKY) has been proposed in the Bill. The declarant under this regime shall be required to pay tax @30% of the undisclosed income, and penalty @10% of the undisclosed income. Fu....